The shares of Meta Platforms (META), which owns Facebook, dipped as a result of plans to lay off thousands of workers as soon as this week.
It would be Meta’s second significant round of layoffs. 11,000 employees, or 13% of the workforce, were let go by Meta in November.
Second Round of Lay Off
Today’s stock market closing price for Meta stock was 184.51, down 0.2%. Since the beginning of November, when the business announced its first round of layoffs, Meta stock has risen.
Zuckerberg promised to turn 2023 into a “year of efficiency” for the struggling social media juggernaut at the time. The business also revealed $40 billion in additional share repurchases, which sent Meta stock soaring.
- It would be Meta’s second significant round of layoffs.
- 11,000 employees were let go by Meta‘s First round of layoffs.
- AMZN, GOOGL, MSFT, CRM, and META were the sources of over half of the revenue.
According to Roger Lee, the creator of Layoffs.fyi, as of February 27 more than 120,000 tech workers had lost their employment. Roger Lee made this statement in an interview with IBD last week. IT industry layoffs are tracked by the website Layoffs.fyi.
Beginning in October, the current wave of job losses accelerated to a breakneck speed. The announcement of 147,000 IT layoffs occurred between then and January.
Amazon (AMZN), Google parent Alphabet (GOOGL), Microsoft (MSFT), Salesforce (CRM), and Meta were the sources of over half of the revenue. Like many social media sites, Meta is having trouble as a result of a dramatic decline in advertising as businesses worry about the financial situation, fear a recession, and raise lending rates.
This is taking place as Facebook makes a risky bet to create the “metaverse,” a virtual reality environment that has not yet gained popularity. According to Lee, the overhiring that started in mid-2020 is what led to the layoffs in the tech sector.
When the prospect of the Covid-19 epidemic subsided, IT companies anticipated a surge in consumer spending. But it didn’t go like that. This year, the price of Meta stock has increased by 53%.